RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2013

Jul 28, 2013

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ASX ANNOUNCEMENT

29 July 2013

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Quarterly Activities Report for the Period Ended 30 June 2013

Mr Jeffrey Moore Managing Director

Mr Ed Turner Technical Director

Riedel Resources Limited (“Riedel” or “the Company” , ASX: RIE) is pleased to present its 2013 June Quarter Activities Report:

Mr Andrew Childs Non-Executive Director

COMPANY SECRETARY

Mr Bruce Franzen

EXPLORATION HIGHLIGHTS

Marymia

•  Assessment and consolidation of all recent and historic exploration data to best prioritise future exploration work on copper, gold and nickel targets continued at Marymia.

Cheritons Find

•  Accelerated efforts to identify and assess opportunities to commercialise the Cheritons Find gold deposit during the Quarter, including entering into discussions with other regional gold explorers and producers in relation to toll treatment and other treatment options and resource consolidation strategies.

CORPORATE HIGHLIGHTS

CONTACT DETAILS Principal & Registered Office Suite 1 45 Ord Street West Perth Western Australia 6005

Postal Address PO Box 1559 West Perth Western Australia 6872

Website www.riedelresources.com.au

Email admin@riedelresources.com.au Phone +61 8 9226 0866

Facsimile +61 8 9486 7375

ABN: 91 143 042 022 ASX CODE: RIE

• Completion of Share Placement and Convertible Note to raise approximately $0.49M.

• General Meeting of Shareholders to be held on 31 July 2013.

• Cash at 30 June 2013 - $0.35M .

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Riedel’s assets include a portfolio of gold, copper and nickel projects and significant land holdings in prospective Archaean- and Proterozoic-age terranes of Western Australia and the rights to acquire five Permits in Burkina Faso with high prospectivity for Proterozoic-age gold mineralisation (see Figure 1).

The Company has a mixture of advanced and early stage prospects, with an initial focus on four core Projects:

• Marymia (copper, gold, nickel and base metals) ;

• Burkina Faso (gold and copper) ;

• Cheritons Find (gold -[1] Inferred Resources of 1.4Mt @ 2.4g/t Au for 108,000 oz) ;

• Millrose (gold - Inferred Resources of 4.0Mt @ 2.4g/t Au for 309,000 oz)

Furthermore, the Western Australian Projects are augmented with a number of additional prospects, including existing joint ventures, royalty agreements and free carried interests.

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Figure 1: Western Australia and Burkina Faso (West Africa) Project Locations

1 Sons of Gwalia – 29 November 2000

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WESTERN AUSTRALIA

MARYMIA PROJECT

Project Activities

During the Quarter Riedel continued to consolidate all recent and historic exploration data to best prioritise future exploration work on copper, gold and nickel targets at Marymia ( see Figure 2 for project location and Figure 3 for current target map ).

Future exploration programmes contemplate a project-wide aerial electromagnetic geophysical survey (VTEM) to test for conductive nickel and copper sulphide deposits and other planning has focused on the drilling of the best gold targets with RAB and RC/diamond core.

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Figure 2: Marymia Project - Location Map

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Figure 3: Marymia Project - Gold, copper and nickel targets

CHERITONS FIND GOLD PROJECT

Project Activities

Riedel’s 100%-owned Exploration Licence 77/1793 contains the Cheritons Find (Redwing) gold deposit which hosts[2] Inferred Mineral Resources of 1,400,000 tonnes @ 2.4g/t Au for 108,000 ounces of gold.

The exploration licence is located in the Forrestania-Southern Cross Greenstone Belt, approximately 48 kilometres south of Hanking Gold Mining Limited’s 2.2 Mtpa gold processing plant at Marvel Loch in the Eastern Goldfields Region of Western Australia.

During the Quarter the Company continued to identify and assess opportunities to commercialise the Cheritons Find gold deposit, including entering into discussions with other regional gold explorers and producers in relation to toll treatment and other treatment options

2 Sons of Gwalia – Inferred Resource Report – 29 November 2000

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and resource consolidation strategies. A geological summary of the Cheritons Find Project follows.

Geological Setting

E77/1793 covers a west-north-west striking sequence of mafic and ultramafic rocks, flanking the south-western part of the Parker Range Dome ( see Figure 4 ).

At the Redwing deposit, significant gold mineralisation has been discovered along a strike length of 500 metres and to a vertical depth of 160 metres. The mineralised deformation zone dips shallowly to the south and has a true thickness of between 5 metres and 30 metres although the host rock sequence and associated structural deformation zone extends for at least a further 2,500 metres to the south of Redwing.

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Figure 4: Cheritons Find and Redwing Gold Deposit – Location and regional geological map

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Within the overall mineralised/deformation zone, free gold is hosted by a series of stacked, sheeted quartz veins ranging in thickness from one to four metres within alteration halos which are characterised by calc-silicate, carbonate, garnet and pyrite assemblages.

Inferred Mineral Resources

In 2000, resource estimation work carried out by Sons of Gwalia Limited (“SOG”) resulted in an Inferred Mineral Resource Estimate of 1,400,000 tonnes @ 2.4g/t Au for 108,000 ounces of gold at the Redwing gold deposit (see Table 1 below) .

TABLE 1: Redwing Gold Deposit – Inferred Mineral Resources

Material	Resource Category	Lower Gold Cutoff (g/t Au)	Top Gold Cut (g/t Au)	Tonnes	Gold Grade (g/t Au)	Contained Gold (oz Au)
Oxide	Inferred	0.5	20	30,000	2.3
Transition	Inferred	0.5	20	100,000	2.0
Primary	Inferred	0.5	20	1,270,000	2.5
TOTAL	Inferred	0.5	20	1,400,000	2.4	108,000

N.B. See detailed notes (attached) “ Key inputs used for Inferred Mineral Resource estimation” .

Riedel has subsequently carried out a peer review of the Resource Estimate using independent expert Bob Annett Consulting. This work has validated the overall geological and structural methodology adopted by SOG and the general tenor of the tonnage, grade and metal (ounces) estimates which resulted from SOG’s work. Sample locations, drilling sample recoveries and analytical methods are deemed acceptable for resource estimation purposes.

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----- Start of picture text -----

Laterite gold deposit
mined 1993-1994
Quartz Lodes sub-parallel to bedding
on mafic and ultramafic contact
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Figure 5: Redwing Gold Deposit Cross-Section – All lodes projected to single section looking west.

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Planned Work Programmes

Future work includes infill drilling with 50 metre deep reverse circulation (RC) drill holes on 40 metre by 40 metre centres to upgrade the classification of the upper 30 metres of the Redwing gold deposit to measured and indicated status for the purpose of facilitating open-pit mining studies and optimisations. The planned resource drilling programme will consist of 22 RC holes for a total of 1,100 metres of drilling.

Royalty

The Redwing gold deposit is subject to a 3.5% gross proceeds royalty, payable to Hanking Gold Mining Limited and its associates.

WEST AFRICA

BURKINA FASO PROJECTS

Exploration Activities

There were no field exploration activities completed during the Quarter.

TENEMENTS

Porphyry M31/145 was relinquished on 25 June.

CORPORATE

On 7 May 2013, the Company advised that it had completed a Share Placement offered to sophisticated and professional investors and had negotiated a Terms Sheet for a Convertible Note facility with clients of Oracle Securities Pty Ltd, raising combined funds of approximately $0.49 million.

The placement has raised $0.10 million before costs, with the issue of 1.71 million ordinary shares at an issue price of $0.06 per share and free attaching unlisted option on a 1:1 basis exercisable at 10¢ per share on or before 30 April 2015 (“Options”) as follows;

• ─ 1.71 million new shares at 6.0¢ per share to raise circa $0.10 million to be issued within the Company’s 15% placement capacity under Listing Rule 7.1.

• ─ 1.71 million Options to be issued within the Company’s 15% placement capacity under Listing Rule 7.1.

Key terms of the Convertible Note are:

• The facility will raise up to $0.39 million before costs and has a maturity date of 30 June 2014.

• An interest rate of 8% is payable quarterly in arrears in cash or freely tradeable Ordinary Fully Paid Shares of the Company (the “Interest Shares”), at the lender’s sole

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discretion. The Interest Shares will be issued at a price per share equal to the lower of 90% of the 10 consecutive trading day volume weighted average price (“VWAP”) on the Australian Securities Exchange (“ASX”) prior to execution of the Secured Convertible Debenture agreement or 90% of the 10 consecutive trading day volume weighted average price (“VWAP”) on the Australian Securities Exchange (“ASX”) prior to the relevant quarterly interest payment notice.

• The Secured Convertible Debentures will be secured by a first charge over the Company’s Millrose Project Area and Cheritons Find (Redwing) gold prospect.

• The debentures can be converted in full or any part thereof into freely tradeable Ordinary Fully Paid Shares of the Company (the “Conversion Shares”), at the lender’s sole discretion at any time after 30 June 2013. The Conversion Shares will be issued at a price per share equal to the lower of 90% of the 10 consecutive trading day VWAP on the ASX prior to execution of the Secured Convertible Debenture agreement or 80% of the 10 consecutive trading day VWAP on the ASX prior to the relevant conversion notice.

• The company shall issue to the investor 9.75 million unlisted options to purchase fully paid ordinary shares in the company with a strike price equal to 130% of the 10 consecutive trading day VWAP on the ASX prior to execution of the Secured Convertible Debenture agreement with an expiry date 31 December 2016.

• A fee equal to 6% of the Issue Amount is payable to Oracle Securities in cash or freely tradeable Ordinary Fully Paid Shares of the Company (the “Broker Shares”), at the Company’s sole discretion. The Broker Shares will be issued at a price per share equal to 90% of the 10 consecutive trading day volume weighted average price (“VWAP”) on the Australian Securities Exchange (“ASX”) prior to execution of the Secured Convertible Debenture agreement.

Funds raised from the Placement and Convertible Note will be applied to exploration of the company’s projects and working capital.

The Company had advised that it had convened a General Meeting of Shareholders for 8.30am, 31 July 2013, to be held at the Company offices in West Perth. The resolutions of the meeting seek shareholder approval for the ratification and issue of various securities related to the recent placement and those contemplated by the issue of a Convertible Note.

The Company held Cash Reserves at 30 June 2013 of $0.35M .

As previously reported, in response to the protracted volatility in Australian and offshore stockmarkets and financial centres, the Company continues to implement prudent cash management measures to most-efficiently constrain near-term expenditure.

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For further information please contact:

Ed Turner Executive Director Riedel Resources Limited Tel: +61 8 9226 0866 Email: ed.turner@riedelresources.com.au

Jeffrey Moore Managing Director Riedel Resources Limited Tel: +61 8 9226 0866 Email: j.moore@riedelresources.com.au

About Riedel Resources Limited

Riedel Resources Limited is an Australian-based exploration company established to explore for and develop mineral deposits. Since listing on ASX on 31 January 2011 the Company has successfully secured the services of a core team of experienced corporate and technical professionals, experienced in all facets of exploring and developing minerals deposits in Australia and overseas.

Further information can be found at the Company’s website www.riedelresources.com.au

Key inputs used for Inferred Mineral Resource estimation

Drilling data from 61 reverse circulation (8,264 metres) and 1 diamond drill hole (177.7 metres) utilised; Drill hole density based on 80 metre spacing between drill lines and predominantly 40 metre spacing on drill lines; Petrographic, metallurgical and bulk density work completed; Dry bulk densities estimated

oxide material = 2.0t/m[3] , transitional material = 2.5t/m[3] , primary material = 2.8t/m[3] ;

Resource sectional polygons (length weighted average polygons) based on minimum 2 metre down hole intercept >0.5g/t Au to define boundaries,

maximum 2 metres of internal dilution,

intercept grade calculated as weighted arithmetic mean of individual intercepts using 20g/t high cut (~97.5[th] percentile);

Resource blocks projected midway between drill holes or maximum 20m down dip.

Metallurgical testwork based on 4 samples from 1 diamond hole with results confirming;

cyanide circuit recoveries >93% from oxide, transitional and fresh material, gravity circuit gold recoveries from 35-70%;

ore exhibits low sulphide, As, Bi, Ni and Cu content with low reagent consumption predicted.

Competent Person’s Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ed Turner, who is a Member of The Australian Institute of Geoscientists. Mr Turner is a full time employee of Riedel Resources Limited. Mr Turner has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves’. Mr Turner consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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